ECO 561 Complete Class

1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that

the supply of clothing has grown faster than the demand for clothing

demand for clothing has grown faster than the supply of clothing

the supply of and demand for clothing have grown by the same proportion

there is no way to determine what has happened to supply and demand with this information

2) Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and Julia's to:

the money supply divided by the velocity of money equals the price level divided by real output

the money supply times the velocity of money equals the price level times real output

the money supply times the price level equals real output divided by the velocity of money

the money supply times the price level equals real output times the velocity of money

28) Suppose that U.S. prices rise 4% over the next year while prices in Mexicorise 6%. According to the purchasing power parity theory of exchange rates,what should happen to the exchange rate between the dollar and the peso?

This article covers the topic for the University Of Phoenix ECO 561 Final Exam. The author is working in the field of education from last 5 years. This article covers the basic of ECO 561 Final Exam Assignment from UOP. Other topics in the class are as follows: